Case Analysis:

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Case Analysis:Boston Beer CompanyBy: Wisam Moshe, Badih Mouannes, Trevor Wollman, Ashley Clinger, Clark Lacerda Introduction Key Issues SWOT P.E.S.T.Porter's Five Force VRIO Analysis Financial of Boston Beer Company Business Level Strategy Business Level Strategy ContinuedCorporate Strategy- Vertical Integration Corporate Level Strategies- Synergies Strategic RecommendationsDiscussion Questions:Boston Beer Company started by Jim Koch in 1984Jim was a recent college graduate. Had received his MBA from Harvard. Secret family beer recipe had been in the family for 6 generationsWent public in 1995 and had 30,000 investors. They offered class A stock for $15 to loyal customers and $20 through an IPOBoston Beer Company is semi vertically integratedControl production of beer, all beer is made in houseHowever, hops are all outsourcedDistribution is also outscoured, primarly with MillerCoorsMarketing is controled in house with multi- million dollar ad campaigns often seen on ESPN Recently Spent $50 million on Freshest Beer Program Upscale Beer Profitable- UtopiaCreation of Angry Orchard Hard CidersIn 2013 controlled 40% of hard cider market2011 created Alchemy & Science Purpose was to help brewers find better beer ingredients, promote better brewing methods Keep their growth strategy being careful not to dilute brand name Differentiate by product qualityTop quality yeast, hops & maltKeep reputation for uniqueness(General Environment)

Competitive Advantage is achieved through product differentiation-41 Different kinds of craft beer-Priced over other import/premium beer

Continuously invest in bringing better beer to their customers-$50 million to reduce the time beer sits before reaching consumers

Focus strategy is seen through purchase of breweries and technology to better serve the same customers.

Economies of Scale-Not many firms are able to scale their craft brews to the size of Boston Brewing. -Presents future issue of being craft

Economies of Scope-Alcoholic beverages other than beerKeep the focus on their freshest beer programTasty & Flavorful productsGrow Brand recognition outside the U.SUse power and influence over distributors to increase growth where 3 tier system existsStrategic Recommendations:External Analysis

Threats

Emerging MarketInternational ExpansionNew Product DevelopmentDecline in Beer IndustryOpportunityPolitical/Legal:Economic:Sociocultural:Technological:Three Tiered System ( Mfg, Dist., Retail)Strict Laws and regulations on Beer Sale and Consumption in the United States.Increasing and growing economy, with a larger Disposable income Consumers are becoming more aware and Knowledgeable. Advancements in supply chain through Efficiency and Quality.When you think of Sam Adams, what comes to mind...Craft beer, Premium beer? What about Blue Moon and Shock Top?

Do you think The Boston beer company would loose a sizable amount of passionate consumers if they produced more than 6 million barrels ? International ImportsIncreasing number of Craft BreweriesIndustry Leaders with CraftLike Beer Industry ConsolidationDo you believe they could keep the quality of their beer if they produced more than 6 million barrels ? Emerging Market